The Spain Services PMI in July
According to a report by Markit Economics, the Spain Services PMI (purchasing managers’ index) stood at 57.6 in July, compared with 58.3 in June. The PMI figure didn’t meet the preliminary market estimation of 58.3.
The softer performance in Spain’s Services PMI was mainly due to the following:
- Production volumes and output slowed in July.
- New business orders and export orders showed softer improvement in July.
- Employment rose at a stronger pace for the month.
Performance of various ETFs in July
The iShares MSCI Spain Capped ETF (EWP), which tracks Spain’s performance, rose nearly 4% in July 2017. The Vanguard FTSE Europe ETF (VGK), which tracks Europe’s (HEDJ) (EZU) (IEV) economic performance, rose 2.8% in July 2017.
Spain is one of the most important economies in the Eurozone. Improving investor confidence in major economies like Germany (EWG), France (EWQ), and Spain (EWP) is improving the overall confidence in the Eurozone economy.
However, recent falls in major economic indicators are mainly due to the fall in domestic demand. During the 2Q17 earnings season, investor sentiment has dropped some, which has hampered domestic demand.
In the next part, we’ll assess the Eurozone Services PMI for July 2017.